Go Fashion hits record high on healthy outlook; up 100% against issue price
Shares of Go Fashion (India) hit a record high of Rs 1,373.90 as they rallied 6 per cent on the BSE in Thursday’s intra-day trade on healthy outlook. The stock surpassed its previous high of Rs 1,341, touched on November 30, 2021. In the past one month, it has outperformed the market by surging 23 per cent, as compared to 2 per cent decline in the S&P BSE Sensex.
The market price of Go Fashion has nearly doubled against its issue price of Rs 690 per share. The company had debuted on the bourses on November 30, 2021.
Buoyed by strong wedding/festive season, and a normalised quarter after a gap of two years, lifestyle retailers displayed a strong show with robust topline growth during April-June quarter (Q1FY23).
Go Fashion (India) is one of the leading women’s bottom wear clothing company in India, and markets products under the brand name ‘Go Colors’. The Company is engaged in the design, sourcing, development, marketing, and retail of women’s bottom wear products. Its bottom wear products include leggings, dhotis, churidars, harem pants, Patiala, palazzos, trousers, culottes pants, and jeggings, sold across different categories such as western wear, fusion wear, ethnic wear, athleisure, denim for women and girls across all age groups and sizes.
Since the overall women’s bottom wear market is large, the company is optimistic of the overall retail sentiment. With just an 8 per cent market share, the company intends to stay focused on bottom-wear by adding new bottom wear styles across ethnic, western, fusion, and lounge wear.
The company plans on expanding the business by adding 120-130 exclusive brand outlets (EBOs) in the coming financial year, and also targets healthy same-store sales growth for the existing network. Moreover, the company will seek to strengthen the online business by implementing a seamless omni-channel experience between the company’s stores and online channels.
“Retail sector appears to be on the cusp of delivering strong sustained revenue growth driven by improved consumer sentiment, wardrobe refresh and increased spend on discretionary purchases as consumer wallet share on non-essentials had remained subdued for last two years,” analysts at ICICI Securities said in a sector report.